Meyer Equities signs $98M refi for office building in Garment District, down from $110M

Meyer Equities through the entity 469 Holdings LLC as borrower signed a refi loan with lender Citibank through the entity Citi Real Estate Funding Inc valued at $98 million for the three office condominium units that comprise the entirety of 469 Seventh Avenue in the Garment District, Manhattan.
The deal closed on August 30, 2022 and was recorded on September 8, 2022. The prior lender was AIG which held debt that had an original loan amount of $110 million. The three properties have 193,534 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $506 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Meyer Equities was Martin Meyer. The signatory for Citibank was Ana Rosu Marmann.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 469 7th Avenue.

The property

The 469 7th Avenue parcel has a total lot size of 146,043 square feet. The city-designated market value for the property in 2022 is $42.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Garment District, the majority, or 70 percent of the 51.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.8 times the average sales volume among other neighborhoods with $938.2 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 2.9 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 469 7th Avenue, PincusCo has identified the owners of six of the 16 commercial properties representing 966,219 square feet of the 1,894,317 square feet. The largest owner is Sol Goldman Investments, followed by Adams & Company and then Falcon Properties.
There are no active new building construction projects on this tax block.

the majority, or 98 percent of the 1.7 million square feet of built space are office buildings, with retail buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Meyer Equities owned at least two commercial properties in New York City with 327,141 square feet and a city-determined market value of $62 million. (Market value is typically about 50% of actual value.) The portfolio has $77 million in debt, with top three lenders as JPMorgan Chase, Northeast Bank, and Urban Standard Capital respectively. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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